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Potential Grab, Trans-cab merger could block entry and expansion of rival ride-hailing platforms: Competition watchdog

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SINGAPORE — Tech firm Grab's proposed takeover of Trans-cab could affect how drivers employed by the taxi operator use other ride-hailing platforms, Singapore's competition watchdog said on Monday (Oct 16).

The Competition and Consumer Commission of Singapore added that this may in turn"raise barriers to expansion and entry" for rival platforms, given the importance of scale in the industry.from industry figures, are notwithstanding the fact that under Singapore's point-to-point transport regulatory framework, licensed ride-hail operators are not allowed to impose exclusive arrangements preventing their drivers from using other platforms.

CCCS — a statutory board under the Ministry of Trade and Industry — had sought public feedback in August on how the move could affect the price, quality and quantity of street- and ride-hailing services by taxi and private-hire car drivers, among other aspects. On Monday, CCCS said in a media release that upon completion of an initial review, it was "unable to conclude" that the proposed acquisition would not give rise to any competition concerns.

 

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Potential Grab, Trans-cab merger could block entry and expansion of rival ride-hailing platforms: Competition watchdogThe Competition and Consumer Commission of Singapore has raised concerns over how Trans-cab drivers may use other platforms, should Grab succeed in its proposed takeover of the taxi operator.
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